PPG Industries Inc. (PPG): Today's Featured Chemicals Winner

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

PPG Industries ( PPG) pushed the Chemicals industry higher today making it today's featured chemicals winner. The industry as a whole closed the day down 0.6%. By the end of trading, PPG Industries rose $1.98 (1.7%) to $116.61 on average volume. Throughout the day, 940,493 shares of PPG Industries exchanged hands as compared to its average daily volume of one million shares. The stock ranged in a price between $114.17-$116.64 after having opened the day at $114.39 as compared to the previous trading day's close of $114.63. Other companies within the Chemicals industry that increased today were: Gevo ( GEVO), up 5%, Pure Bioscience ( PURE), up 3.9%, Georgia Gulf ( GGC), up 2.2%, and Ceres ( CERE), up 2.1%.
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PPG Industries, Inc. manufactures and supplies protective and decorative coatings. PPG Industries has a market cap of $17.64 billion and is part of the basic materials sector. The company has a P/E ratio of 20, equal to the average chemicals industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 38.4% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate PPG Industries a buy, no analysts rate it a sell, and four rate it a hold.

TheStreet Ratings rates PPG Industries as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the negative front, Kraton Performance Polymers ( KRA), down 14.1%, Flexible Solutions International ( FSI), down 8.8%, Rentech Nitrogen Partners ( RNF), down 4.8%, and Lizhan Environmental ( LZEN), down 4%, were all laggards within the chemicals industry with Dow Chemical ( DOW) being today's chemicals industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the chemicals industry could consider Materials Select Sector SPDR ( XLB) while those bearish on the chemicals industry could consider ProShares Short Basic Materials Fd ( SBM).

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